The Pension Fund Operators Association of Nigeria (PenoP) has announced plans to venture into offshore pension investments to enhance returns on investments.
The Chief Executive Officer of PenoP, Oguche Agudah, made this revelation during a virtual session titled “Ask Me Anything,” aimed at creating awareness about the activities and operations of the Contributory Pension Scheme (CPS) in the country.
Addressing the query on offshore investments, Agudah stated, “Currently, all pension funds are invested domestically. However, there are ongoing engagements with the regulator, the National Pension Commission, and the Central Bank of Nigeria (CBN). It is expected that once all modalities are in place, we will commence offshore investments of pension funds.”
Agudah further explained that Retirement Savings Account (RSA) holders receive returns on their investments credited to their accounts because “Pension Fund Administrators invest daily in various sectors such as bonds, Treasury bills, and capital markets, adhering to the guidelines set by the regulators, namely PenCom.”
In response to an inquiry about accessing pensions for individuals who have left the country, Agudah noted that “RSA holders can access their funds from anywhere in the world using the cross-border arrangement policy, in compliance with the scheme’s regulations.”
Providing more details on programmed withdrawal for RSA holders, he mentioned, “Upon resignation or retirement before reaching the age of 50, a holder can access 25 per cent of their RSA savings after confirmation by the Pension Fund Administrator, with the remaining amount spread across subsequent years once the holder turns 50.”
Agudah dismissed the misconception that “Pension is a scam,” attributing it to a misunderstanding of the Contributory Pension Scheme (CPS). He emphasized that the sector is highly regulated in Nigeria, assuring contributors that their funds are secure.
This move towards offshore pension investments signifies a significant development in the Nigerian pension industry, reflecting efforts to diversify investment portfolios and maximize returns for RSA holders.